IB Economics SL Internal Assessment Example

Relevant diagrams are included for all three commentaries and they generally match the topic of each article.

The macroeconomic diagram attempts to show the transmission from a lower interest rate to a higher level of aggregate demand.

The student's written explanation shows an effort to connect diagrams to welfare changes, prices, quantities, and stakeholder outcomes.

The externality diagram for the alcohol commentary is built on the wrong theoretical relationship, since negative external costs should create a gap between marginal private cost and marginal social cost.

The quota diagram is not technically accurate because an import quota does not shift domestic supply to a new schedule labeled with quotas; it restricts imports and changes the domestic price outcome.

Several diagram explanations rely on incorrect mechanisms, so the written discussion does not consistently support accurate economic analysis.

The student uses a wide range of relevant economic vocabulary, including terms connected to market failure, monetary policy, protectionism, and welfare.

The terminology is often appropriate to the topic and shows that the student is drawing on subject-specific language rather than general description.

Some macroeconomic terms, especially around inflation and disinflation, are used with reasonable confidence.

Key terms are sometimes used inaccurately, especially in the externality analysis where marginal private and social concepts are confused.

Some trade terminology is imprecise, such as references to world producer surplus or claims about export effects that are not clearly justified.

There is occasional loose wording where more exact economic language would make the commentary clearer and more credible.